Top 10 cryptocurrencies in August 2022 – Forbes Advisor UK

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you first start out in the cryptocurrency world. To help you get your bearings, these are the top 10 cryptocurrencies based on their market capitalization or the total value of all coins currently in circulation.

1. Bitcoin (BTC)

  • Market capitalization: over £ 362 billion

Created in 2009 by someone using the pseudonym of Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain or ledger transaction ledger spread across a network of thousands of computers. Since additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is protected and protected from scammers.

Bitcoin’s price skyrocketed when it became a household name. In May 2016, you could buy a Bitcoin for around £ 370. As of August 1, 2022, the price of a single Bitcoin was £ 18,929.

Related: Buy Bitcoin (BTC) with eToro

2. Ethereum (ETH)

  • Market capitalization: over £ 162 billion

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers due to its potential applications, such as so-called smart contracts that are automatically executed when conditions and non-fungible tokens (NFTs) are met.

Ethereum has also experienced tremendous growth. From April 2016 to August 2022, its price went from around £ 8 to over £ 1,365.

Related: Buy Ethereum (ETH) with eToro

3. Tether (USDT)

  • Market capitalization: over £ 53 billion

Unlike other forms of cryptocurrency, Tether is a stablecoin, which means it is backed by fiat currencies such as British pounds, US dollars, and euros and hypothetically holds equal value to one of those denominations. In theory, this means that Tether’s value should be more consistent than other cryptocurrencies and is favored by investors who are wary of the extreme volatility of other currencies.

Related: Buy Tether (USDT) with eToro

4. US dollar currency (USDC)

  • Market capitalization: over £ 37 billion

Like Tether, USD Coin (USDC) is a stablecoin, which means it is backed by US dollars and aims for a USD 1 to USD 1 ratio. USDC is powered by Ethereum and you can use USD Coin to complete global transactions.

Related: Buy US dollar (USDC) coins with eToro

5. Binance Coin (BNB)

  • Market capitalization: over £ 38 billion

Binance Coin is a form of cryptocurrency that you can use to trade and pay commissions on Binance, one of the largest cryptocurrency exchanges in the world.

Since its launch in 2017, Binance Coin has expanded simply by facilitating exchanges on the Binance exchange platform. It can now be used for trading, payment processing, or even travel booking. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

In 2017 it was priced under 10p, but by 1 August this year it had risen to around £ 232.

Related: Buy Binance Coin (BNB) with eToro

6. XRP (XRP)

  • Market capitalization: over £ 30 billion

Created by some of the same founders of Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different types of currencies, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was £ 0.004. As of August 1, 2022, its price reached 30 pence.

Related: Buy Terra (XRP) with eToro

7. Solana (SOL)

  • Market capitalization: over £ 17 billion

Developed to help power uses of decentralized finance (DeFi), decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanism that helps it process transactions quickly and safely. SOL, Solana’s native token, powers the platform.

When it launched in 2020, the price of SOL started at £ 0.57. By 1 August 2022, its price was around £ 34.

Related: Buy Solana (SOL) with eToro

8. Cardano (ADA)

  • Market capitalization: over £ 13 billion

A little late for the cryptocurrency scene, Cardano stands out with its first approach to proof-of-stake validation. This method accelerates transaction times and reduces energy consumption and environmental impact by removing the competitive and problem-solving aspect of transaction verification found on platforms such as Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which are powered by ADA, its native currency.

Cardano’s ADA token experienced relatively modest growth compared to other major cryptocurrencies. In 2017, ADA’s price was around 1.5 pence. As of August 1, 2022, its price was around 41 pence.

Related: Buy US Dollars (USDC) with eToro

9. Pois (DOT)

  • Market capitalization: over £ 8 billion

Cryptocurrencies can use any number of blockchains. Polkadot (and its namesake crypto) aims to integrate them by creating a cryptocurrency network that connects the various blockchains so they can work together. This integration could change the way cryptocurrencies are managed and has spurred impressive growth since Polkadot’s launch in 2020.

Between September 2020 and August 1, 2022, its price increased from £ 2.15 to £ 6.90.

Related: Buy Polkadot (DOT) with eToro

10. Dogecoin (DOGE)

  • Market capitalization: over £ 7.5 billion

Dogecoin was famously started as a joke in 2013, but has quickly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.

Dogecoin’s price in 2017 was £ 0.00016. By August 1, 2022, its price was 0.05 pence.

* Market chapters and prices effective August 1, 2022.

NOTE: * Investing in cryptocurrencies is not regulated in most EU countries and the UK. No consumer protection. Your capital is at risk. ** CFDs are complex instruments and come with a high risk of losing money quickly due to leverage. 68% of retail investor accounts lose money when trading CFDs with eToro.

Frequently Asked Questions About Cryptocurrencies

What are cryptocurrencies?

Cryptocurrency is a form of currency that exists exclusively in digital form. Cryptocurrency can be used to pay for online purchases without going through an intermediary, such as a bank, or it can be held as an investment.

How does cryptocurrency trading differ from stocks?

Do you have to pay cryptocurrency taxes?

Are there any cryptocurrency traded funds (ETFs)?

How do you buy cryptocurrencies?

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